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2015-04-20 City Council Minutes Local Board of Appeals & EqualizationNlbertville SmON Tow. Wn 9 ft City We. CITY OF ALBERTVILLE LOCAL BOARD OF APPEAL AND EQUALIZATION April 20, 2015 APPROVED MINUTES ALBERTVILLE CITY HALL ROLL CALL 5:30 PM PRESENT: Board members Jillian Hendrickson, Walter Hudson, Rob Olson, Larry Sorensen, and John Vetsch ABSENT: None OTHERS PRESENT: City Administrator -PWD Adam Nafstad, Finance Director Tina Lannes, City Clerk Kimberly Olson, Acting Wright County Assessor Tony Rasmuson, and Wright County Appraiser Wally Peterson Hendrickson called the meeting to order at 5:35 p.m. PRESENTATION - WRIGHT COUNTY ASSESSOR'S OFFICE Wright County Assessor Peterson began by explaining that the purpose of the Local Board of Appeal and Equalization is to review the assessment of property. This Local Board of Appeal and Equalization is being held for the 2015 assessment for taxes due and payable in 2016. Peterson reported values for the 2015 assessment are determined using a Department of Revenue sales ratio study that occurred between October 1, 2013 and September 30, 2014. Peterson reported there were 91 qualified and 67 unqualified residential sales. The median price for the qualified sales was $204,333. He stated that unqualified sales (foreclosure/bank sales) were trending down. He stated that new construction is moving back up. Residential values increased 3.53 %, commercial values decreased 1.13 %, and apartment values increased 8.25 %. Rasmuson reported the commercial value decrease can be explained due to change in classification of property rather than a reduction in commercial value. Overall, Rasmuson stated they have seen several trends. There has been depreciation in the big box market (does not include the Albertville Premium Outlet Mall) as buildings age. He noted they have also seen an increase in online banking that has meant financial buildings are currently overbuilt, especially those over 4,000 square feet. The Wright County Assessor's Office is accelerating the depreciation schedule for these. City of Albertville Meeting Minutes Local Board of Appeal and Equalization April 20, 2015 Page 2 of 3 He stated that the northeast apartment values in the County were low compared to sale prices, so those were adjusted. Sorensen asked how many Albertville residents contacted the County. Peterson stated that he received over a dozen calls, but only two of those were in relation to value and were resolved. He clarified there were no adjustments made this year. Hendrickson stated that she received one call regarding a short sale and an unexpected amount in taxes. Rasmuson stated that short sales cannot be looked at as a market transaction. He indicated that the County looks strictly at value and is not the taxing authority. Hudson left the meeting at 5:50 p.m. Nafstad inquired if there was any difference in sales between the STMA ISD #885 and Elk River ISD #728. Rasmuson indicated that he did not see any notable difference. Nafstad inquired about the former Heuring tax forfeit lot. Rasmuson stated there is about $175,000 in special assessments. He stated that the City can keep the special assessments on the lot and receive a nominal fee for the purchase of the land, or the City can forgive the special assessments in order to get a potentially higher purchase price. The County's counter price for this lot is $100. Rasmuson stated that given the amount of current, vacant commercial space available, it could be a certain amount of time before the lot sells. Rasmuson explained that special assessments cannot be re- imposed until the sale of the lot occurs. Vetsch stated there is the perception that businesses have failed and suggested they look at purchasing the lot in order to facilitate development at the site. Nafstad stated this would be further discussed at the regular City Council meeting. Nafstad inquired about PID #101- 141 - 001010 which was part of the railroad land exchange plat with Main Avenue NE businesses. Rasmuson responded the parcel is valued at $47,100. Nafstad stated this lot has been for sale for some time. He stated there is no debt on the lot and Lannes stated that they were able to get the other parcels in the land exchange to $2.00 /square foot because there was a land swap involved. Nafstad stated they would like to see if they could get the value reduced to be similar to $2.00 /square foot. Hendrickson felt this parcel would be a prime location with the future park plan for Central Park, access to the soccer facility, etc. Rasmuson stated they would be willing to reduce the value at the City's request. Motioned by Hendrickson, seconded by Vetsch, to accept the valuations set by the Wright County Assessor's Office and to direct the Assessor to reduce the value of PID # 101 -141- 001010 to $31,410. Ayes: Hendrickson, Olson, Vetsch, and Sorensen. Nays: None. Absent: Hudson. MOTION DECLARED CARRIED. MAPublic Data \City Council\Council Minutes\2015 Minutes\2015 -0420 LBAE Minutes.doc City of Albertville Meeting Minutes Local Board of Appeal and Equalization April 20, 2015 Page 3 of 3 ADJOURNMENT Motioned by Hendrickson, seconded by Sorensen, to close the Valuation Hearing and adjourn the meeting at 6.22 p.m. Ayes: Hendrickson, Olson, Sorensen, and Vetsch. Nays: None. Absent: Hudson. MOTIONDECLARED CARRIED. Respectfully submitted, imberly✓ lson, City Clerk MAPublic Data \City Council \Council Minutes\2015 Minutes\2015 -04 -20 LBAE Minutes.doe